Consumer confidence hits five-month high in January
Consumer confidence rose to its highest level for five months in January, research from Nationwide shows.
Nationwide’s latest consumer confidence index shows that confidence picked up by nine points to 47 last month.
Robert Gardner, chief economist at Nationwide, says confidence staged a modest recovery at the start of 2012, after ending last year close to all time lows.
But he says: “Nevertheless, sentiment remains subdued by historic standards, with the main index almost 30 points below its long-run average.”
He says that given the challenging economic backdrop, the improvement in confidence may prove to be little more than a temporary bounce, although a number of economic indicators have been more positive than expected in recent weeks, with the sharp fall in inflation potentially lifting consumers’ spirits.
Gardner adds: “Looking forward, renewed hope that the UK will avoid a double-dip recession may support sentiment, especially since the downward trend in inflation is set to continue through 2012.
“But with the UK recovery likely to remain weak in the first half of the year, a significant and sustained rise in consumer confidence remains unlikely in the near term.”
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